Bankruptcy Blogs

Too Cool for School Specialty – Alternative DIP Financing Allows Educational Company to Avoid Immediate Sale

03/04/13

The School Specialty chapter 11 case began in what has become all too typical fashion. The company, overleveraged and short of cash, had no choice but to accept a lifeline extended by its second lien secured lender, a private investment fund. The terms of the debtor in possession (“DIP”) financing required School Specialty to

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The Daily Docket: Vitro Reaches Deal to Conclude Restructuring

03/04/13

Mexican glass manufacturer Vitro SAB said Monday that it has reached an agreement with nonconsenting creditors that will put an end to two years of litigation and allow the company to conclude its debt restructuring. Read the article in Daily Bankruptcy Review.

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Executive Pay Crackdown; Review of Foreclosure Reviews Continues; Is JPM Pushing into Wealth Management to Push its Own Products?

03/04/13

Receiving Wide Coverage ...

Executive Pay: The global crackdown on executive pay continues. Swiss voters backed a plan over the weekend that places severe limits on how companies pay their executives and directors. These limits give shareholders (including pension funds holding shares) a binding say on executive compensation, prohibit bonuses from being awarded to executives joining or leaving the firm and require "annual re-elections for directors." Firms that violate these rules could face heavy fines equal...

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'Prepaid Card' = Checking Account

03/04/13

Characteristics of prepaid cards and checking accounts have converged. This will continue until they are simply different names for the same thing. Manage them together, and provide with each all the relevant features for which customers will profitably pay.

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Why the Independent Foreclosure Reviews Were Doomed to Fail

03/03/13

Apparently part of the bank flaks' talking points regarding the foreclosure reviews is that to the extent homeowners harmed by wrongful foreclosures, they were actually drug dealers. The message: we didn't foreclose on anyone who didn't deserve it. We were just foreclosing on some scumbags and doing you all a favor by getting the meth lab out of the neighborhood before it blew up. We're part of the war on drugs. 

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SCRA and Foreclosures

03/03/13

The more we learn about the mortgage servicing settlement, the more rotten it's looking. I really didn't think it was possible, but this piece in the New York Times details more problems, including with Servicemembers Civil Relief Act (SCRA) violations in the form of foreclosures on active duty military members.  

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Is Payment of Past Due Secured Debt A Bankruptcy Preference?

03/02/13

A debtor owes money to his parents, and his parents long ago recorded a mortgage on the debtor’s real property. The debtor was behind in the note payments to the parents. The debtor is concerned about that paying his loan to his parents would be an improper preferential payment in a Chapter 7 bankruptcy proceeding.

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